White House hopeful Barack Obama on Thursday linked the dollar's steep slide to imbalances in the U.S. economy and Bush administration policies, which he said had put the country deeply in debt.I am not in favor of everything he said above but he has the right general idea, especially about ending the war and getting our budget in balance.
"We are spending all our money, spending overseas and spending dollars and nobody is buying things from us," Obama told a town hall event in Gary, Indiana, in response to a question.
"What happens is Saudi Arabia's got a lot of dollars because they're selling a lot of oil. In China, they have a lot of dollars because they're selling us all the things all the stuff we used to make right here in Gary," Obama said.
"And at a certain point, they say you know, we have enough dollars," he said. "Our banks are full of them right now."
The dollar has lost roughly 40 percent of its value since 2002. In recent months, the pace of the dollar's drop has accelerated as investors around the world have lost confidence in the health of the U.S. economy.
Obama, who has taught constitutional law at the University of Chicago, used a professorial style to giving a longer version of the answer that modern U.S Treasury secretaries routinely offer when asked about the U.S. currency -- that its value reflects economic fundamentals.
But he went a step further in saying that President George W. Bush's policies have hurt the economy and therefore weakened the dollar.
Obama said that the national debt has gone up sharply because of the Iraq war, which by the time it is over "will cost us over $1 trillion."
At the same, Bush has given "tax cuts to some of the wealthiest Americans who didn't need it and weren't even asking for it."
"The point is, the way to strengthen the dollar is to strengthen the economy and the way to strengthen the economy is to invest in our infrastructure, invest in our information systems, roll back those Bush tax cuts, end this war, get our budget in balance," Obama said.
"If we do those things then over time, the dollar will actually get stronger," he said.
Ron Paul Question General Petraeus
Play this video of Ron Paul questioning Gen Petraeus at Iraq Surge Hearing. Ron Paul really stuck it to Petraeus. If this does not convince you of the stupidity of the war, nothing will.
Click Here To Play Video
Ron Paul High Tide
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My choice in this election remains Ron Paul, but sadly, Ron Paul will not win the nomination or the presidency. At this point, Obama is the best we can realistically do. McCain and Hillary will keep us in Iraq for something close to forever.
Obama: The Next President
The statement I made on February 10th looks increasingly likely. Obama: The Next President Of The United States
Obama responds to Hillary, McCainMeet Barack Obama, the next president of the United States of America.
Unstoppable momentum is now a gale force wind propelling Barack Obama towards the Democratic nomination. That same wind is blowing stiffly in the face of Hillary Clinton and even more so (when it comes to the presidential election) John McCain.
Grass roots will carry the banner for the first time since McGovern in 1972. Barack Obama will win the Democratic nomination and go on to beat McCain in the presidential election of 2008.
People Sick Of War For Economic Reasons
The public has finally had enough of this war, not because of the lack of progress, the constant bickering, or sadly to say even the needless killing. Rather the public has lost support for this war for economic reasons. And they are right on that score.
McCain and Hillary made major mistakes by accusing Obama of being "out of touch". It was a fat pitch and Obama hit it out of the park as this video shows.
Click Here To Play Video
Mad As Hell
Obama has sensed the country is "Mad As Hell And Can't Take It Any More".
Click Here To Play Video
ValuTrader on Silicon Investor writes "The general populace is not there yet, but Obama correctly senses that they are moving in that direction."
It's hard to argue with that. And what people are most upset at is jobs and wages. With that in mind, please consider....
Outsourcing: How to Skirt the Law
What follows is an excerpt of a post I did last October called Shortage of Skilled Labor?
Outsourcing: How to Skirt the Law
Want to hire cheaper foreign workers instead of Americans? A lawyer tells you how to game the immigration system—and it's all on YouTube.
The trick, according to Cohen & Grigsby attorneys, is to only go through the motions of hiring Americans without ever intending to.
"[O]ur goal is clearly not to find a qualified and interested U.S. worker," says Lawrence Lebowitz, director of marketing for the Pittsburgh law firm Cohen & Grigsby, before an audience of employers at the firm's conference.
The trick, according to Cohen & Grigsby attorneys, is to only go through the motions of hiring Americans without ever intending to.
Play the entire video. It's a real eye opener.
The seminar shows
- How to run ads that do not find any U.S. applicants.
- How to disqualify U.S. applicants who submit resumes.
- How to discourage qualified U.S. applicants from taking the job.
If you have an opinion you can contact Lawrence M. Lebowitz, Vice President of Marketing, Cohen & Grigsby at 412.297.4979 Email: Lawrence M. Lebowitz
Fundamentally Broken
Meanwhile Bernanke says "Nothing fundamentally broken on Wall Street" while ex-Fed chair Paul Volcker is essentially saying the Fed Is Incompetent And Dangerous.
I agree with Volcker and I will also add the words "acting illegally" in its bailout of Bear Stearns (JP Morgan actually as JP Morgan was a big counterparty to Bear Stearns swaps).
Inquiring minds will want to read the Fed Uncertainty Principle for more on the illegality of the Fed's actions.
Please Sign the Petition to Abolish The Fed
It's not just the Wall Street that's broken, it's Main Street as well. The reason is the policies at the Fed, Congress, and this administration.
The US can no longer afford to be the world's policeman. The dollar is sinking because we continue to try. US citizens have correctly put their finger on this and finally realize the number one thing we can do to support the economy is leave Iraq.
Political pandering in Congress, bank bailouts and policies at the Fed, and Bush's warmongering and empire building are the reasons the entire US is fundamentally broken. It's high time for a change. Neither McCain or Hillary will give us that change.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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